HB1326 establishes the Prekindergarten Savings Account Program within the Maryland State Department of Education. The program would create education savings accounts for eligible children who are eligible to enroll in public prekindergarten, with the State depositing a portion of the per-pupil state and local funding that would otherwise be allocated to the child’s resident school district. The deposit amount would be 75% of the per-pupil amount for families at or below 500% of the federal poverty level, and 50% for families above that threshold. Parents could use the funds for a range of prekindergarten-related expenses, including tuition and fees at qualifying nonpublic programs, tutoring, curricular materials, online learning, internet service, and certain contracted services.
The bill also creates administrative, accountability, and eligibility rules for participating families, schools, and providers. Parents must agree to use the funds only for approved educational purposes, ensure attendance and required assessments, and return unused funds when the child finishes prekindergarten or leaves a qualifying school. The Department of Education would qualify financial managers, set fees, audit accounts, and investigate misuse. Qualifying schools would need to meet health, safety, nondiscrimination, background check, and program approval requirements, and school districts would have to provide student records to participating providers in compliance with federal privacy law.
HB1326 would also amend the Tax-General Article to allow a Maryland income tax subtraction for amounts a parent deposits into a program account on a pre-tax basis. In effect, the bill would shift a portion of public prekindergarten funding from traditional district-based funding to portable accounts controlled by parents, while also creating a state tax benefit for additional private contributions to those accounts. The bill takes effect July 1, 2025, with the tax provision applying to taxable years beginning after December 31, 2024.
Because no committee transcripts or recorded votes were provided, there is no direct evidence of legislative debate, support, or opposition in the supplied materials. Based on the bill text alone, the measure appears to reflect a school-choice approach to early childhood education, with likely support from proponents of parental control and private educational options. Potential concerns suggested by the text include reduced funding for resident school districts, oversight of account spending, eligibility and equity issues, and whether public prekindergarten resources should be redirected to nonpublic providers.
The bill would add a new Title 9.12 to the Education Article establishing a statewide Prekindergarten Savings Account Program and would amend § 10-208 of the Tax-General Article to create a subtraction modification for deposits into program accounts. It would require the State to make quarterly deposits into eligible students’ accounts, reduce corresponding state and local aid to resident school districts, and require counties to reimburse the State for the local share. It also imposes new regulatory, auditing, and provider-qualification duties on the State Department of Education and creates new compliance obligations for participating schools and families.
No voting record or committee testimony was provided, so the overall sentiment cannot be measured from the supplied legislative history. The bill’s structure suggests a favorable orientation toward parental choice, private prekindergarten options, and flexible use of education funds. At the same time, the absence of discussion materials means there is no documented consensus or opposition in the provided record.
The main likely points of contention are the diversion of public prekindergarten funding away from resident school districts, the use of public dollars for nonpublic providers, and the administrative burden of auditing and policing account use. Critics may also question the income-based funding tiers, the tax subtraction benefit, and whether the program could create inequities or weaken public prekindergarten systems. Supporters would likely emphasize expanded access, parental control, and the ability to tailor early childhood education to individual student needs.